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Your Quick Guide to Financial Aid

There is a lot of unnecessary confusion about college financial aid. In fact, many people have serious misconceptions about what financial aid is. So, let's clear up some misconceptions by defining financial aid and the most important financial aid terms.

College financial aid includes scholarships, grants, loans, and work study funds from various sources.

Scholarships and grants are financial awards for which students do not have to work or make repayment. Such awards normally require high achievement, special talent and/or established financial need. Financial aid in this category is often referred to as gift aid.

Not all financial aid requires demonstration of financial need. A student's financial aid is determined by a formula which is applied to the answers a student submits on the free federal financial aid form (FAFSA). Students must submit a FAFSA (on paper or online) if they wish to apply for need-based financial aid.

At some colleges only a FAFSA is required. Other colleges may require you to complete their own institutional financial aid form as well.

Student who qualify by virtue of need may be offered work study jobs in college offices or at non-profit agencies in nearby communities.

There are two kinds of loans offered to students. The first are unsubsidized loans; loans which students with established financial need can receive at reduced interest rates and need not begin repaying until six months after they leave college. The second kind of loan is one that does not require established financial need but comes with a higher interest rate because the government does not subsidize the lender.

There really is not much else you need to know about financial aid except for the importance of meeting deadlines, the need to read and follow the instructions on the financial aid letters and publications sent to you, and the fact that you should contact your college financial aid office immediately if you encounter difficulty.

Good luck.

Article Source: http://www.dummiesguideto.com

University Dean Daniel Z. Kane invites you to visit his websites, which offer information on scholarships, financial aid, colleges, universities, campus life, adult education, online colleges, and online degrees.

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